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Nintendo Expects 10% Fewer Switch Sales Due to Supply Chain Woes



OSAKA -- Nintendo expects to sell only about 20 million Switch game consoles in the current fiscal year, a 10% decrease from fiscal 2021, despite strong demand, Nikkei has learned, as a semiconductor shortage and disruptions to logistics networks hamper production.

The figure is a 30% decrease from fiscal year 2020, when sales of the Switch hit a peak at 28.83 million units.

The number of Switches sold in fiscal 2021 is estimated at 23 million units, a 20% decrease from the previous year. That fiscal year, Nintendo initially planned to produce a record 30 million of the consoles, but the global chip shortage made it difficult to procure microcontrollers and other products, and the company lowered its production forecast in the fall.

The Kyoto-based company would like to start increasing production, but the prolonged chip shortage and global supply chain disruptions exacerbated by Russia's invasion of Ukraine will impact production.

Meanwhile, China, where the Switch is produced, is grappling with coronavirus outbreaks. Supply chains there have has been disrupted by the lockdown in Shanghai, hurting production and delivery of parts and materials. If the lockdown is prolonged, sales of the Switch in fiscal 2022 could fall below 20 million units.

 
If Nintendo can "only" produce 20M units in 2022 of a console that wasn't even that great (hardware-wise) in 2017...imagine the struggle for Sony with the PS5 to get to those numbers per year.

They're literally selling every unit they make. If they could make more they would sell those too. Did you even attempt to read the first post?
i...don't remember the last time i walked into a store and there wasn't plenty of Switches on sale. Maybe pandemic first year?
 
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nush

Gold Member
Supply chains there have has been disrupted by the lockdown in Shanghai, hurting production and delivery of parts and materials. If the lockdown is prolonged, sales of the Switch in fiscal 2022 could fall below 20 million units.

This reads like bullshit to me, Nintendo use manufacturing plants in the south of China and Shanghai is a financial hub not a manufacturing city like Shenzhen for example.
 

Elysion

Member
I‘m actually surprised that they sold 20% less Switch units in 2021 compared to 2020. I thought their numbers were still rising year after year. But I‘m not sure I buy that it‘s entirely due to supply constraints. Has the Switch been hard to get over the last year? I’m pretty sure I‘ve always seen them in stores. Sounds more like the Switch is starting to hit market saturation at its current price.

But if the Switch has really entered its saturation phase, then the chances of Nintendo releasing a successor next year are pretty good (maybe even with BotW2 as a cross-gen launch title?). By next year the Switch will be six years old; both the DS and the 3DS were the same age when their successors launched. However, if the supply situation continues, they might not be able to produce as much as they would like to. Then again, according to this article the same is true for the current Switch as well, so it looks they‘re kind of screwed either way, whether they release a Switch 2 in the near future or not.
 

FStubbs

Member
I‘m actually surprised that they sold 20% less Switch units in 2021 compared to 2020. I thought their numbers were still rising year after year. But I‘m not sure I buy that it‘s entirely due to supply constraints. Has the Switch been hard to get over the last year? I’m pretty sure I‘ve always seen them in stores. Sounds more like the Switch is starting to hit market saturation at its current price.

But if the Switch has really entered its saturation phase, then the chances of Nintendo releasing a successor next year are pretty good (maybe even with BotW2 as a cross-gen launch title?). By next year the Switch will be six years old; both the DS and the 3DS were the same age when their successors launched. However, if the supply situation continues, they might not be able to produce as much as they would like to. Then again, according to this article the same is true for the current Switch as well, so it looks they‘re kind of screwed either way, whether they release a Switch 2 in the near future or not.
Give me enough time to get a bot or something so I don't have to wait 3 years to get one.
 

Rykan

Member
Why don't you fucking try stepping outside ?

All stores are full on Switch stock...
There's a few things to consider here.

1. This may be refering to the OLED model, which may have different stock/production situation

2. I don't know where you are located, but it's important to realise that United States and Europe allocation of stock are heavily prioritized by all 3 console manufacturers over the rest of the world in that order.

3. There may be a situation where production can meet demand now, but it may not be possible to have enough stock for the holiday season which will see an increase in demand.
 
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They're literally selling every unit they make. If they could make more they would sell those too. Did you even attempt to read the first post?
They're not though. I can walk into any store around here and pick a Switch up off the shelf. I don't think my city in the middle of America is some grand exception either.

I've never seen a PS5 or Series X on an actual retail store, but there are always Switch consoles available.
 

GigaBowser

Gold Member
No idea why this thing is still selling so well. Casuals don't care about great games and graphics.

20 million is better than any PS4 or PS5 year. PS5 could have done more this year but the stock situation is crippling Sony the worst right now.


They're not though. I can walk into any store around here and pick a Switch up off the shelf. I don't think my city in the middle of America is some grand exception either.

I've never seen a PS5 or Series X on an actual retail store, but there are always Switch consoles available.
It's been out for 6 years. Seeing Switch available literally means nothing. Those units will still all sell.
 
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DenchDeckard

Gold Member
How are they tracking vs ps2 ? I was convinced it would outsell it to become the biggest sales behemoth of all time but will these shortages mess them up?

Switch continue to be unbelievable.
 

Mozza

Gold Member
To be honest I do not expect a Switch 2 announcement till late 2024 or early 2025 at the very earliest, so there would be still a great chance for the Switch to overtake the DS and PS2, even more so with a price drop at some point.
 
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Mozza

Gold Member
They're not though. I can walk into any store around here and pick a Switch up off the shelf. I don't think my city in the middle of America is some grand exception either.

I've never seen a PS5 or Series X on an actual retail store, but there are always Switch consoles available.

Both the PS5 and Series X are a different proposition though, both consoles are still pretty new and more importantly are constantly reported to be a hot item and very hard to get hold of, they are of a lot more interest to re sellers etc, who will be constantly on the hunt for stock, using buying notifiers and Bots etc, you can pretty much buy both consoles at any time, only difference is it will be for more than retail on E-bay etc. So even though the crazy scalping prices have gone down a bit, it's still pretty easy to flip these consoles for at least a $100 plus profit.

So seeing consoles on store shelves it not always an indicator as these will sell, another consideration is the Switch is still at a fair old price point, and at six years old would not be a great proposition to re sellers, outside of a special edition, or the initial OLED launch period.
 
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Woopah

Member
They're literally selling every unit they make. If they could make more they would sell those too. Did you even attempt to read the first post?
I‘m actually surprised that they sold 20% less Switch units in 2021 compared to 2020. I thought their numbers were still rising year after year. But I‘m not sure I buy that it‘s entirely due to supply constraints. Has the Switch been hard to get over the last year? I’m pretty sure I‘ve always seen them in stores. Sounds more like the Switch is starting to hit market saturation at its current price.

But if the Switch has really entered its saturation phase, then the chances of Nintendo releasing a successor next year are pretty good (maybe even with BotW2 as a cross-gen launch title?). By next year the Switch will be six years old; both the DS and the 3DS were the same age when their successors launched. However, if the supply situation continues, they might not be able to produce as much as they would like to. Then again, according to this article the same is true for the current Switch as well, so it looks they‘re kind of screwed either way, whether they release a Switch 2 in the near future or not.
Switch peaked in 2020 and is definitely in decline now. Even if they were able to produce more I doubt that will be able to sell over 28 million in a single year again.
At 10% fewer, my prediction of a 50$ price-cut across the board would mean record sales again.
If they can't supply enough Switches to fully meet demand then its very unlikely we see any sort of big price cut. Not unless a new model launches.
Because it is. I'm not sure that there is another console who managed such feat in its 6th year.
Closest was the DS with 17 million I believe.
No idea why this thing is still selling so well. Casuals don't care about great games and graphics.

20 million is better than any PS4 or PS5 year. PS5 could have done more this year but the stock situation is crippling Sony the worst right now.



It's been out for 6 years. Seeing Switch available literally means nothing. Those units will still all sell.
They don't care about graphics but they do care about great games. Great games are the reason for the Switch's success.
How are they tracking vs ps2 ? I was convinced it would outsell it to become the biggest sales behemoth of all time but will these shortages mess them up?

Switch continue to be unbelievable.
Launch aligned they are about 20 million ahead of PS2, but its important to remember that about a third of PS2's total sales took place after its successor launched. Its highly unlikely that Switch will have those same legs.
 

Mozza

Gold Member
Switch peaked in 2020 and is definitely in decline now. Even if they were able to produce more I doubt that will be able to sell over 28 million in a single year again.

If they can't supply enough Switches to fully meet demand then its very unlikely we see any sort of big price cut. Not unless a new model launches.

Closest was the DS with 17 million I believe.

They don't care about graphics but they do care about great games. Great games are the reason for the Switch's success.

Launch aligned they are about 20 million ahead of PS2, but its important to remember that about a third of PS2's total sales took place after its successor launched. Its highly unlikely that Switch will have those same legs.
All this depends on when the Switch successor hits, I feel we wont get a reveal until at least late 2024 early 2025, perhaps later so the DS and PS2 are not that an unrealistic target, as long as Nintendo keep the games coming who knows where the Switch will end up.
 

Mozza

Gold Member
Because it is. I'm not sure that there is another console who managed such feat in its 6th year.
You can't look at the Switch in normal console terms though, it has a very broad demographic and is still a very desirable piece of kit, and also does not have it's main appeal routed in the performance market, so it could just continue selling well, even more so with the mass market consumers.
 
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Mozza

Gold Member
No idea why this thing is still selling so well. Casuals don't care about great games and graphics.

20 million is better than any PS4 or PS5 year. PS5 could have done more this year but the stock situation is crippling Sony the worst right now.



It's been out for 6 years. Seeing Switch available literally means nothing. Those units will still all sell.
It does have great games though, just because you personally do not like them makes little to no difference at all.
 
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The real reason that they are expecting Switch Sales because the Steam Deck is embrassing the Switch at every level. Look at any post on Reddit and the hype Steam Deck has. It is no contest. Meanwhile, Pokemon Legends Arcesus is a dud in every objective level. (Look at how quickly it was forgotten when Elden Ring showed up) and Kirby is just kirby.

Why would you get a Switch when you can get a Steam Deck and emulate Switch games?
 
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onesvenus

Member
The real reason that they are expecting Switch Sales because the Steam Deck is embrassing the Switch at every level. Look at any post on Reddit and the hype Steam Deck has. It is no contest. Meanwhile, Pokemon Legends Arcesus is a dud in every objective level. (Look at how quickly it was forgotten when Elden Ring showed up) and Kirby is just kirby.

Why would you get a Switch when you can get a Steam Deck and emulate Switch games?
I hope you are not serious.
 

jigglet

Gold Member
Considering how hard supply chain issues have hit pretty much every other industry, tech related or not, I'm surprised they're only 10% down.
 

Impotaku

Member
I hope you are not serious.
They probably are, it's the retarded mentality that plagues this site they are so butthurt that despite it's graphical shortcomings the switch is still bitch stomping everything. They latch onto anything they can twist into something to shit on the switch & or nintendo it's quite sad really, i'm sure the deck can indeed emulate the switch but why would anyone pay way more for a console that has the battery life of a gamegear to play switch games.
 

FStubbs

Member
To be honest I do not expect a Switch 2 announcement till late 2024 or early 2025 at the very earliest, so there would be still a great chance for the Switch to overtake the DS and PS2, even more so with a price drop at some point.
IIRC PS2 sold a ton of consoles after the PS3 came out and it was in impulse buy range. Switch could keep selling after Switch 2 comes out if the price is cut.

To be fair, one factor against that is that the PS2 kept getting games after the PS3 came out. I imagine the Switch's output will fall like a rock when its successor comes out.
 

Hezekiah

Member
They're not though. I can walk into any store around here and pick a Switch up off the shelf. I don't think my city in the middle of America is some grand exception either.

I've never seen a PS5 or Series X on an actual retail store, but there are always Switch consoles available.
Lots available of all three models on Amazon UK, has been the case for months.
 
Is 20 million not the demand we expect after 6 years, ok maybe they are 1 or 2 million short, switch hardware is so poor, we really need a switch 2 asap. and after 6 years, game output from nintendo is just sad, 1 or 2 good games per year, yet its still selling like hot cakes, as they have handheld business all to them selfs, with no competition.
 
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Mozza

Gold Member
The real reason that they are expecting Switch Sales because the Steam Deck is embrassing the Switch at every level. Look at any post on Reddit and the hype Steam Deck has. It is no contest. Meanwhile, Pokemon Legends Arcesus is a dud in every objective level. (Look at how quickly it was forgotten when Elden Ring showed up) and Kirby is just kirby.

Why would you get a Switch when you can get a Steam Deck and emulate Switch games?
The Steam Deck will never tap into the mainstream marketplace, it will be niche at best, even Valve say it's not direct competition for the Switch, your post looks like a core opinion applied to everyone else.
 

Mozza

Gold Member
IIRC PS2 sold a ton of consoles after the PS3 came out and it was in impulse buy range. Switch could keep selling after Switch 2 comes out if the price is cut.

To be fair, one factor against that is that the PS2 kept getting games after the PS3 came out. I imagine the Switch's output will fall like a rock when its successor comes out.
It will still depend on when a Switch successor is revealed, the current model could still have many years left, even more considering it's more casual mainstream audience.
 

Celine

Member
A drop to annual sales of 20M?
That's bloody awful. Shame on you, Nintendo.



How are they tracking vs ps2 ? I was convinced it would outsell it to become the biggest sales behemoth of all time but will these shortages mess them up?

Switch continue to be unbelievable.


Switch will soon become the third best selling console of all time.
But jury is still out there if it can surpass DS and PS2, in the end.
 
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Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
Next week Nintendo will hold their fiscal meeting for the year. We'll get FY projections, and likely details on other plans.

It's all gonna be answered soon.
 

Mozza

Gold Member
Steam Deck's announcement kept me from buying a Switch. I got the Deck a week ago and it has been totally worth it. Valve's got a monster product.
Hope you are enjoying it, as it looks an awesome piece of tech.

But on the whole the wider mass market does not even know the Steam Deck even exists, and not sure they would be all that bothered about it's power if they did. Another thing is the whole 720p screen issue, the Switch has a 720p screen and it's the end of the world and should be at least 1080p, the Steam Deck has a 720p screen and it's the best console in the world, seriously you could not make any of this up if you tried. ;)
 
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Woopah

Member
I call bullshit, this is an excuse to try and keep investors happy.
Lol Nintendo. You always have a way with words to try paint a different picture. You sold 28mil at the peak of the pandemic in 2020. There is no shortage. It's a normal and expected decline of a product's life.
Bit this isn't Nintendo talking to investors, this is Nikkei telling us what Nintendo is saying internally / to suppliers.
Is 20 million not the demand we expect after 6 years, ok maybe they are 1 or 2 million short, switch hardware is so poor, we really need a switch 2 asap. and after 6 years, game output from nintendo is just sad, 1 or 2 good games per year, yet its still selling like hot cakes, as they have handheld business all to them selfs, with no competition.
Its selling due to Nintendo and third parties releasing far more than 2 good games a year. Without games that people want to play, Switch wouldn't sell anything.
 
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